CENVAT Credit

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CA Pankaj (Querist)
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11 May 2010 As CENVAT Credit of Service tax on Input Service is available after payment of Service Value and Tax thereon.

There are some of expenses due but not paid as on 31.03.10 (As we follow accrual accounting). In this case how to take credit of Service tax in 2009-10 as payment has not been made. Should we book expense including service tax in 2009-10 and reverse expense next year while taking CENVAT Credit or there should be some other accounting treatment.
Pl help....

Shyam Lal Naik

Shyam Lal Naik (Expert)
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11 May 2010 You should not claim expense for the tax that you wish to claim as Cenvat Credit.

The unpaid tax can be shown under a separate Account styled "Cenvat Suspense Account".

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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11 May 2010 You have to stand service tax amount on such expense in account " Service Tax to be Availed A/c " . When you will paid this expense. then you will availed this amount .

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